CCL Industries, a multinational producer of specialty packaging solutions for diversified industries, is set to install a wine label manufacturing facility in Santiago, Chile.

Acrus-CCL, a Santiago-based joint venture (JV) between CCL and a newly created Chilean investment holding company, will invest around $10m in the project, which was arranged by a combination of debt and equity.

Apart from CCL, the other members of the JV consists two groups of shareholders: Mitchell Kendall and David Goodman; and Jose Mingo, Aldo Gonzalez and Marinetti family.

Marinetti family has presence in packaging and the wine and spirits market in Chile.

CCL and its partner will hold 50% stake in the new venture.

Initially, CCL will make $2m equity investment in the project along with a similar amount addition by its JV partner.

Acrus-CCL, which will initially focus on the Chilean market, will further enter the wine and spirits sectors of other Spanish speaking countries in the Mercusor trading zone.

Acrus-CCL general manager Aldo Gonzalez said both the companies are excited to bring new leading edge supply chain and label converting technologies to the very specific needs of Chilean wine exporters.

"We have a highly experienced local management team that knows the wine industry intimately, supported by the technologies and global leverage of the world’s largest label company. I believe such a powerful combination will bring many benefits to our customers in Chile," Gonzalez added.

Acrus-CCL president and chief executive officer Geoffrey Martin said the investment expands presence in both the wine and spirits business of both the partners and adds an important territory in the fast growing Latin American region.

"CCL’s interests in the joint venture will be represented by Luis Jocionis, Vice President and Managing Director, CCL Label Brazil. We expect the company to commence trading this month and plan to reach profitability in 2013," Martin added.